The Hindu Business Line : Service tax: Chambers asked to list problems in centralised registration

THE Finance Ministry has asked apex industry associations to come up with a detailed submission on the problems faced by them in obtaining a centralised registration for service tax.

This follows representation to the Revenue Department from certain industry associations such as Assocham and PHDCCI that the process of granting centralised registration was cumbersome and causing undue delays.

As per the Finance Ministry norms, centralised registrations are to be granted within seven days of receipt of application.

"We have asked the chambers to tell us exactly the areas where they feel that the information may not be warranted or where they are facing practical difficulties in furnishing information to the specified authority. We would look into it after they submit their views," Mr R. Sekar, Joint Secretary, Finance Ministry, said.

The Finance Ministry had in March specified the Director-General (Service Tax) as the authority for granting centralised registration. The DG (Service Tax) had in early June stipulated that a person seeking centralised registration must furnish certain information/documents. It is understood that information/documents has been sought on 22 different areas from an applicant.

Industry is of the view that there are certain information (like bank account numbers of the branches and the central office through which receipts are transacted, date of provision of taxable service/s, residential address of proprietors/ partners/directors) that may not be warranted or difficult to provide

Among the various industry sectors, companies in the fast-moving consumer goods sector have been on a centralised registration for the service tax payable by them on goods transport agencies.

Under the current service tax regime, a company (as consignor or consignee) that pays the freight for the transportation of goods by road is liable to fork out the service tax on the services of a goods transport agency. Consequently, such companies are required to have registration with the Central Excise Department at every location in which they pay freight for transportation of goods by road in goods carriage.

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